Samonte vs CA G.R. No. 104223 July 12, 2001 I.

Parties Petitioner: TIBURCIO SAMONTE - registered owner of the land in questioned Respondents: COURT OF APPEALS, EUGENIA DANGO GADIANO, TEOFILO GADIANO, PETRONILO DANGO, FELICIANA DANGO, NONILO MARAVE and GERONIMO DANGO -The surviving heirs of Apolonia Abao and Irenea Tolero who are the predecessors of the land. II.Prior Proceedings The parcel of land (Lot No. 216) subject of this dispute is situated in Nasipit, Agusan del Norte, and originally covered by Original Certificate of Title No. RO-238(555) issued in the names Apolonia Abao and her daughter Irenea Tolero. Two cases were separately filed in the Regional Trial Court, Branch II of Nasipit, Agusan del Norte involving the entire lot. Both cases were filed by the surviving heirs of Apolonia Abao and Irenea Tolero.These heirs, children of Irenea Tolero and grandchildren of Apolonia Abao, are the respondents in this case. The first case, Civil Case No. 1672, was an action for quieting of title and recovery of possession of a parcel of land which originally formed part of the entire property. Said parcel of land was denominated as Lot 216-B-2-G and covered by Transfer Certificate of Title (TCT) No. RT-899 in the name of Irenea Tolero. The defendants named therein were spouses Andres and Amanda Lacho. The second case, Civil Case No. 1816, is similarly an action for quieting of title and recovery of possession. Unlike the first case, however, Civil Case No. 1816 involved the entire Lot 216. The complaint therein sought the annulment of several certificates of title covering portions of Lot 216 and the reinstatement of OCT No. RO-238(555). The defendants in the second case were Nicolas Jadol, Beatriz Jadol, Jacobo Tagorda, Henry Jadol, Aurelio Rotor and herein petitioner. Initially, the two cases were heard independently of each other. It was discovered, however, that they were intimately related. Accordingly, the

court a quo jointly tried the two cases. After due trial, the trial court rendered separate decisions, both in favor of the plaintiffs therein. The defendants in the two cases respectively appealed the aforesaid decisions to the CA. The CA ordered the consolidation of the two appeals. The CA ordered the consolidation of the two appeals. The CA affirmed the decisions of the trial court. Petitioner then filed the instant petition. III.Theories of the Parties *Petitioner claim that he bought portions of the Lot 216 in good faith as he was made to believe that all the papers in possession of his vendors were all in order. * Respondents -that they have the actual legal possession of the land because as surviving heirs because they have not signed any document agreeing as to the manner how Lot 216 was to be divided, nor have they consented to the partition of the same. IV.Objectives of theParties *Petitioners-seek to reverse and set aside the decision and resolution of CA and to be placed in possession of the land in question *Respondents quieting of title and recovery of possession of the land in question. V.Key Facts After Apolonia Abao died during the Japanese occupation and Irenea Tolero died in 1945, they inherited and became owners of Lot 216. Plaintiffs questioned the series of cancellation of the certificate of title starting from OCT No. RO-238 (555) and the Deed of Extrajudicial Settlement and Confirmation of Sale executed by Ignacio Atupan on August 7, 1957 (Exhibit D-1) adjudicating one-half (1/2) of the area of Lot 216. Plaintiffs maintain that Ignacio Atupan is not a son of Apolonia Abao but he only grew up while living with Apolonia Abao. That when Lot 216 was subdivided into two (2) lots, Lot 216-A and Lot 216-A (sic) which was made as one of the basis in the cancellation of TCT No. 476 and issuance of TCT No. 553 and TCT No. 554 on February 13, 1959, the plaintiffs or their predecessors-in-interest have not signed any document agreeing as to the manner how Lot 216 was to be divided, nor have they

consented to the partition of the same. Defendant Samonte in his evidence claim that he bought portions of the Lot 216 in good faith as he was made to believe that all the papers in possession of his vendors were all in order. Defendant Jadols claim that they became owners of one-half (1/2) portion of Lot 216 by purchase from Ignacio Atupan and Apolonia Abao on September 15, 1939 as shown by a document notarized by Jacobo Bello and signed by Irenea Tolero as a witness. Initially, the two cases were heard independently of each other. It was discovered, however, that they were intimately related. Accordingly, the court a quo jointly tried the two cases. After due trial, the trial court rendered separate decisions, both in favor of the plaintiffs therein. The defendants in the two cases respectively appealed the aforesaid decisions to the CA. The CA ordered the consolidation of the two appeals. The CA affirmed the decisions of the trial court. Petitioner then filed the instant petition. VI.Issues: 1.) WON CA erred in departing from the prevailing doctrine supported by weight of authorities that the discovery of the fraud is deemed to have taken place at the time of the registration. 2.) WON petitioner was a buyer in good faith for value, hence protected by law. VII.Holdings and Findings

still presented the affidavit of Atupan before the Register of Deeds of the Province of Agusan when they caused the cancellation of OCT No. R0-238(555) and issuance of TCT No. RT-476 in their names covering that portion owned by Abao. It was noted that the documents evidencing the alleged transactions were not presented in the Register of Deeds. Petitioners defense also of prescription is untenable. knew that respondents were the only surviving heirs of Irenea Tolero. Despite this knowledge, petitioner still bought a portion of the subject lot from the Jadol spouses when the same was still registered under OCT No. R0-238(555) in the name of Abao and Tolero. While it may be true that the second portion was purchased by Samonte from Tagorda in whose name the same was then registered under TCT No. RT-555, Samonte was previously charged with the fact that Jadol lacked the capacity to transmit title over any part of the subject property including that portion which the latter sold to Tagorda. VIII.Ratio Decidendi 1.) The general rule that the discovery of fraud is deemed to have taken place upon the registration of real property because it is considered a constructive notice to all persons does not apply in this case. We cannot dismiss private respondents claims commenced in 1974 over the estate registered in 1955. While actions to enforce a constructive trust prescribes in ten years, reckoned from the date of the registration of the property, we, as we said, are not prepared to count the period from such a date in this case. Accordingly, we hold that the right of the private respondents commenced from the time they actually discovered the petitioners act of defraudation. According to the respondent Court of Appeals, they "came to know of it apparently only during the progress of the litigation." Hence, prescription is not a bar.

2.) It was established during the trial by the court a quo that he

1.) The petition is bereft of merit. The trial court found that
Atupan, on the basis of his Affidavit of Extra-judicial Settlement and Confirmation Sale, adjudicated unto himself one-half of Lot 216 by misrepresenting himself as the sole heir of Apolonia Abao likewise confirmed in the the two deeds of sale allegedly executed by him and Abao found out to be tainted with fraud because he falsely claimed therein that he was the sole heir of Abao when in fact, he merely lived and grew up with her. Despite this knowledge, the Jadol spouses

2.) The general rule is that a person dealing with registered land has a right to rely on the Torrens certificate of title and to dispense with the need of making further inquiries. This rule, however, admits of exceptions: when the party has actual knowledge of facts and circumstances that would impel a reasonably cautious man to make such inquiry or when the purchaser has knowledge of a defect or the lack of title in his vendor or of sufficient facts to induce a reasonably prudent man to inquire into the status of the title of the property in litigation. One who falls within the exception can neither be denominated an innocent purchaser for value nor a purchaser in good faith; and hence does not merit the protection of the law. IX.Disposition The Court denied the petition for lack of merit. The Decision, dated November 29, 1991 of the Court of Appeals and its Resolution, dated February 21, 1992, in CA-G.R. CV No. 16645 are AFFIRMED.